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Scenario 1: Suppose that government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of this action in the gasoline markets?
Scenario 2: Assume that the government imposed a price floor on wages (minimum wage) in order to make sure that workers can earn a living wage. Is this a price floor? What are the economic implications of this action in the labor markets?
Scenario 3: What are the gains and losses of international trade? What happens when tariffs are imposed, in terms of the importing and exporting countries?
Scenario 4: If the government doubled the tax on gasoline, would the tax revenues increase or decrease? Why? Use graphs as needed and explain your answers thoroughly.
In the Ricardian model, everyone seems to profite from trade. However, the Heckscher-Ohlin model seems to show that some lose from trade as well.
When determining the value to be paid for an merger, one of the factors considered is often,
Suppose that the spot value of the British pound is $1.55, the annualized thirty day sterling interest rate is 10 percent, the annualized 30-day U.S. interest rate is 8.5 percent,
Ms. Smith longs 1 XYZ Feb. 40 Call @ 3 and hold it it to expiration. Suppose no transaction costs, Examine this investment in terms of possible profit or loss. Make a payoff diagram.
Many corporation manufacture more than one product. What is the motivation to do this and explain how do rules for profit maximization differ between a single product corporation and a multiproduct corporation?
Jack and May are the only residents of a small island. Jack operates a paper-mill, and has expenses given by MPC = 10+2Q. Jack gets a value of $24 for each unit of paper he sells.
The U.S. at the end of World War II stood as the world preeminent superpower, with new discovered political and economic wealth. To what degree, if any, has U.S. ascendancy on world stage affected notions of federalism?
Does either country have absolute or comparative advantage in any item? Give support for your answer through computing the "resource costs" or opportunity costs for both products in both countries.
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has make decision to increase his business into the Czech Republic.
China has fundamental interest in determined outcome itn these negotiations. Givenits relative openness, it has an offensive interest in ensuring a reduce of tariffs for many of its key manufactures in many third nations.
China and Japan can manufactures calculators and noodles using land and capital in a competitive market. To manufacture one calculator two units of capital and one unit of land are needed,
Discuss the role of financial systems in promoting economic development and define microfinance? Discuss in detail its potentials and limitations for reducing poverty and spurring grassroots development in LDC?
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